Other Equity: ₹35,233.93 crore (vs ₹34,270.39 crore)
Inventories: ₹6,778.44 crore
Trade Receivables: ₹5,999.88 crore
Cash and Cash Equivalents: ₹1,659.17 crore
Cash Flow Highlights (Consolidated H1 FY27)
Net Cash from Operating Activities: ₹1,218.67 crore
Net Cash from Investing Activities: ₹445.85 crore
Net Cash from Financing Activities: (₹1,055.22) crore (primarily due to dividend payment of ₹1,050.20 crore)
Net Increase in Cash: ₹609.30 crore
Material Events and Disclosures
1. NPPA Litigation on Drug Price Overcharging
The National Pharmaceutical Pricing Authority (NPPA) has issued demand notices since 1998 for alleged overcharging of scheduled drugs under DPCO-1995.
The company filed writ petitions in Bombay High Court in 1999-2000, which were initially decided in its favor in 2001 but set aside by the Supreme Court in 2003.
The Supreme Court stayed recovery of 50% of alleged overcharged amounts subject to deposit of remaining 50%. The company deposited ₹175.08 crore with NPPA in 2003.
Post-2003, the company received subsequent demands, including duplicate demands. The total amount under litigation after removing duplications aggregates to ₹2,011 crore (Principal: ₹863 crore, Interest: ₹1,148 crore).
On 15th July 2025, the company voluntarily deposited an additional ₹27.07 crore towards principal against certain demand notices, without prejudice to its position.
The matter is currently pending before the Supreme Court after the company appealed a Bombay HC order dated 23rd February 2024.
The company has been legally advised to expect a favorable outcome and has not recognized any provision for these demands.
Excluded from the above are demands of ₹9.96 crore jointly addressed to Okasa Pharma Pvt Ltd/Okasa Ltd (promoter group companies) for products manufactured by them and marketed by Cipla. These are also under challenge separately.
2. Share Capital Change
The paid-up equity share capital increased to ₹161.57 crore (80,78,70,615 shares) from ₹161.56 crore due to allotment of 19,350 equity shares under ESOS 2013-A and 5,949 equity shares under Cipla ESAR Scheme 2021 during Q2 FY27.
For H1 FY27, total allotment was 74,253 shares under ESOS 2013-A and 13,731 shares under Cipla ESAR Scheme 2021.
3. Exceptional Item - Labour Code Impact
Effective 21st November 2025, the Government of India implemented four consolidated Labour Codes.
The group recognized an incremental gratuity liability and increased leave liability aggregating ₹275.91 crore (consolidated) and ₹244.37 crore (standalone) due to the revised definition of "wages".
This non-recurring expense has been presented as an Exceptional Item in the financial results.
4. Segment Reporting Change
During FY26, the group reassessed its operating segments consequent to a change in the Chief Operating Decision Maker (CODM).
The group now operates as a single reportable segment: "Pharmaceutical and related products". Comparative figures have been restated.
5. Impairment of Investment in Associates
During FY26, the group recorded an impairment of ₹42.02 crore (consolidated) and ₹31.00 crore (standalone) in respect of investments in associates due to changes in business conditions and market dynamics.
6. Scheme of Amalgamation
The Board on 19th March 2026 approved the Scheme of Amalgamation of Inzpera Healthsciences Limited (wholly-owned subsidiary) with Cipla Limited.
The scheme is subject to approvals under the Companies Act, 2013, including approval from the National Company Law Tribunal (NCLT), Mumbai. The approval is awaited.
7. Change in Revenue Presentation
Effective 1st April 2026, the group presents certain marketing and promotional expenditures as a reduction from Revenue from Operations instead of within Other Expenses.
This is a presentation change only and has no impact on Profit, EPS, Total Equity, or Cash Flows. Comparative figures have been restated.
Auditor Review
The results have been subjected to a limited review by the statutory auditors, M/s B S R & Co. LLP.
The auditors have expressed an unmodified review conclusion on both standalone and consolidated results.
The review report notes that 14 subsidiaries and 1 associate were reviewed by other auditors, whose reports were furnished by management.
Documents and Availability
The unaudited financial results and limited review reports are enclosed with the filing.
These documents are also available on the company's website (www.cipla.com) and on stock exchange websites (BSE and NSE).
